SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces an investigation into potential violations of U.S. federal securities laws by Grab Holdings Limited f/k/a Altimeter Growth Corp. (NASDAQ: GRAB) focused on whether Grab and certain of its officers and directors made false and misleading statements and/or failed to disclose material information to investors.
If you have information that could assist in this investigation or if you are a Grab investor who suffered a loss and would like to learn more, you can provide your information by clicking here. You can also contact attorney Brian E. Cochran of Robbins Geller by calling 800/449-4900 or via e-mail at bcochran@rgrdlaw.com.
THE COMPANY: Singapore-headquartered Grab operates across the deliveries, mobility, and digital financial services sectors in 480 cities in eight countries in the Southeast Asia region. Grab claims to operate “Southeast Asia’s leading superapp,” which functions as the region’s largest ride-hailing and delivery service.
On April 13, 2021, Grab announced that it would go public in the U.S. through a merger with Altimeter Growth Corp., a special purpose acquisition company (“SPAC” or blank-check company). The transaction raised gross proceeds of $4.5 billion in the largest-ever U.S. public market debut by a Southeast Asian company. Grab’s common stock began trading on the NASDAQ on December 2, 2021 under the ticker symbol GRAB. At the time of the merger, Peter Oey, Grab’s Chief Financial Officer, stated that “[o]ur mobility business has been rising as lockdowns have been relaxed. Our payments business also continues to grow. We’re seeing all strong signs.”
THE REVELATION: Just three months later, on March 3, 2022, Grab revealed that its revenues had declined 44% from the prior quarter. Grab further disclosed that it suffered a loss of $3.6 billion in full year 2021, with a $1.1 billion loss in the fourth quarter alone, nearly double the loss Grab reported in the same quarter a year earlier. In contrast to the statements he made at the time of the merger, Peter Oey attributed the poor financial results to “invest[ing] heavily” in driver incentives and stated that it would take one or two quarters “to get that equilibrium between drivers and riders, between supply and demand.” On this news, Grab's stock price declined by approximately 37%.
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